$$Case A$.$ Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $$18,000($original cost of $$40,000$ less accumulated depreciation of $$22,000)$ and a fair value of $$10,200.$ Kapono paid $$32,000$ cash to complete the exchange. The exchange has commercial substance.Case B$.$ Kapono Farms exchanged $100$ acres of farmland for similar land. The farmland given had a book value of $$560,000$ and a fair value of $$820,000.$ Kapono paid $$62,000$ cash to complete the exchange. The exchange has commercial substance.$$